Posco-India seeks further extension of its SEZ validity

Bhubaneswar: Unable to get required land for its proposed multi-product SEZ within the stipulated time, Posco-India has sought Odisha government's recommendation for further extension of the in-principle approval for the purpose, official sources said.

"….We are afraid that we may not be able to secure the minimum required land within the validity of the existing aproval, that is October 25, 2012. Therefore, we would like to apply for in-principle approval one more time," Posco-India Chairman-cum-Managing Director Yoon, Won-Yong wrote to the state government.

The South Korean steel major has requested the state government to invoke Rule 4 of the SEZ Rules-2006 which requires the concerned state to forward its NOC/concurrence/ recommendation to the Centre seeking the approval for extension of in-principle approval of the multi-product SEZ of the company.

POSCO-India has proposed to develop a Multi-product SEZ over an area of 1,620.48 Ha (4,004.22 Ac) in the coastal district of Jagatsinghpur. The proposed SEZ having potential to be commercially and economically viable is likely to attract Rs 53,613 crores of investments, mostly FDI.

According to Yoon's letter, POSCO will set up new infrastructures like port, power plant, roads, railways, townships under the SEZ. Additionally, it will generate about 48,000 (18,000 direct and 30,000 indirect) fresh employments, the letter said.

Considering the benefits that can accrue from our SEZ project, the Centre has kindly granted in-principle approval, which was first extended in 2010 and then in 2011 for one year each.

The validity of the second extension granted on March 2012 is going to expire on this October 25 within which we are required to submit necessary documents for the Formal Approval, read the letter of the steel giant submitted to State government.

The steel major pointed out that the state owned Odisha industrial Infrastructure Corporation (lDCO) has already leased 222.13 Ha (548.09 Ac) of the non-forest government land for the SEZ.

The Ministry of Environment and Forests (MoEF) in the Centre accorded final approval for diversion of 1,253 Ha (3,096 Ac) of forest land in favour of the developer in May 2011.
The company said that it had already invested a good amout of money for land acquisition, forest clearance, rehabilitation and resettlement activities.